ZuluTrade Blog

US Dollar is getting stronger

Market View | Thursday, April 16, 2020 2:53 PM GMT

Obviously, Investors prefer safe heavens instead of riskier assets and the US dollar grinds higher for a second day against its competitors. That is because of the negative US data and the pessimistic estimations on the economy due to coronavirus impact. US retail sales had the worst decline in March as the lockdown restrictions have minimized the overall demand for a variety of products. Later today Traders anticipate the weekly Initial Jobless Claims announcement and expect the negative trend to be verified. 

Under this perspective, EURUSD is currently testing a make or break trendline and has created a triangle on the daily chart. If it validates the bearish breakout, it may activate a potential downside target. GBPUSD is trying to hold 1.2486 level while 20SMA is below it. USDJPY still moves beneath 20SMA while 106.919 is a make or break support. 

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EURUSD daily chart

GBPUSD daily chart

USDJPY daily chart

Heading to the stock markets, most Indices have rebounded to green territory including the US futures. FED’s Kashkari said earlier “In 2008, U.S. taxpayers injected about $200 billion of capital to strengthen banks”,” Raising that amount from private investors today, as a strong, preventive measure, would ensure that large banks can support the economy over a broad range of virus scenarios”. On the other hand, German Finance Minister Olaf Scholz said “The current challenge is a call for solidarity. That applies on a global scale, but it also applies particularly for Europe,”. In the meantime, Mike Pompeo, US Secretary of State, implied that China has something to do with the creation of the coronavirus. Today the US market expects 70 earning releases including major stocks as United Airlines Holdings, BlackRock Inc, Bank of New York Mellon, Morgan Stanley and more. 

Checking the ZuluTrade’s Traders Sentiment, the community is buying GBPUSD and USDCHF while is selling USDJPY, and GBPJPY.

In focus this week (economic calendar):

UnitedStates - Initial Jobless Claims 



The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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